AUDUSD Gains Ground with EURO & CABLE 2

Finally, AUDUSD have started to regain its ground after most investors have swayed much stress over the retaliatory action s of China against the additional US trade tariff imposed by President Trump. The same manner that US equities have continued its pace to record levels after a minor corrective move led by the triple digit climb of the DOW above 26200. Meanwhile, this is also against a backdrop from US 10 year treasury yields that has posted above 3.00% in the US session. 

The AUDUSD price currently at 0.7230 is actually half way through its initial objective that still needs to build more momentum when it passes through above the 0.7280-0.7350. A clear objective of over 200 pips from its registered low at 0.7085.  Which was signaled from an opening gap & extension low that triggered the first round of short-covering  The technical perspective which we presented from the previous overlay chart can now justify that the bullish Gartley price pattern once completed would provide the final confirmation for a bounce. This is also where 'Patience is a virtue' when it comes to trading volatile markets.

This maybe encouraging for swing traders, on the contrary the 2nd objective may still prove to be some distance ahead. Which could easily result similarly to a 'dead cat bounce' if prices would not be accompanied with substantial volumes that would drive it past the 2nd objective. For now the current price swing higher to these levels are good. Especially, when the Australian Dollar got some additional support from their previous strong job data. There will always be a matter of trading  'CORRELATION' directly or indirectly when it comes to the financial markets.

Meanwhile, EURO got some initial relief from CABLE's previous weakness, but both currency pairs have remain firm to higher with the USD softness at this time. The way we approach its weakness for now is quite independent as it would likewise be used as a buffer strategy that once the FED raises rates the USD would be coming from its low pre-adjusted levels coming into the 4th quarter 2018. And this would be well in line with our projection for 10 year US yields to stay above 3% and relatively closer to 3.35% presumed range objective in the near-to-mid term quarter of 2019. 

USD Remains RESILIENT, 10 Year Bond at 2.942% RECOVERY

Post analysis dated Aug 22 through Sept 7, 2018 - USD Index - DXY resiliency have held well from August retest at 94.16 low. In fact, its gradual ascend in prices are quite orderly with HIGHER LOWS from the past 3 months; well above its average at 93.75. 

While closing at 95.33 basis pt. for the week as a result of favorable sentiments surrounding the markets including the Jobs data. The 10 year treasury yield have gained some ground back up at the levels of 2.942%. And the likelihood of a stable level is expected as it resumes a gradual rise heading forward with similar price adjustments on equities.

Reference Data: #DXY as of JUNE LOW 93.36, JULY 93.71 AUG 94.16 respectively 

NFP on Jobs were quite positive for the USD-DXY is currently at 95.20 in the US session. Accompanied by a weaker EURO that fell back to 1.1576, while GBPUSD once again got a lift from Brexit news trading at 1.2961. European majors price movements are more susceptible from EU policy makers that are fundamentally motivated. 

The EURUSD is an obvious mirror image of the USD Index as it has the largest weighted component share in the overall DXY index. From its low at 1.1301 to 1.1747 recovery period has completed its run and bound to resume its overall trend lower where a retest is expected. For as long as the USD continues to stay resilient heading towards the FED's rate hike, a declining pressure remains present. 

Likewise, we should be extra vigilant to watch for unexpected narratives that would derail equities redirection. But as a matter of market perspective, we should be able to adapt to the changing narratives at any given time. 

TSOT- Varying Factors Benefits USD Acceleration - #DXY at 96.00 Basis Point

Ripples Across Major FX Currencies 

Starting off with Federal Reserve-Chicago Charles Evans turning to a hawkish stance who is known for being a dove, is just one contributing factor for the USD lift. The Foreign exchange market have been quite busy across the board which summarizes the following market activities that actually gave the USD - DXY a push towards the 96.00 basis point levels from the 95.17.

Video Support: Transitioning USD Index As of Aug 10, 2018 

> CABLE or the Sterling Pound have continuously been dampened with a No Brexit deal while awaiting UK GDP report. GBPUSD is currently at 1.2772 way past it psychological support price at 1.2880. While the EURGBP Cross at 0.9000 have benefited from CABLE's weakness in spite of the recent daily session relief from the Euro. 

> Except EURUSD have just broken through the ground trading to this writing at 1.1455 where it's aiming at another psychological barrier support at 1.1380 which is not to be discounted as the USD gains momentum to further rise in the near term. 

> USDJPY has been aligned with a USD strength as it benefits from a safe haven status whenever turmoil in the currency market are present while trading at 110.68 from a recent high at 111.51 for the week as of Aug 10, 2018.

Click to continue for more chart details

AAPL at USD1T Valuation! USD steady prior to NFP Figures

With just one stock makes everyone holding it for keeps are all smiles heading to the bank! NFP figures would be the catalyst for the USD now resting slightly above 95.05 levels. Stay Ahead & on course! 

Apple Inc, prices as of 8.03.18

It's all a matter of perspective especially for those who patiently followed our sequence of trend analysis on US equities at the start of June. Where a revisit of the Equities record highs would not be discounted.

As the US market found its bearings from Trump's additional tariff on China didn't weigh heavier from US economic data leading to this Friday's Non-Farm Payrolls figures. Likewise, closely monitoring US 10-Year Treasuries above 3% would have been expected moving forward even when the FED stayed on course while waiting for the NFP on Friday.

Keeping the USD at a steadier level contrary to the BOE raising its rates by 25 Basis point did nothing to push it lower. Instead the Sterling Pound drifted lower after J. Carney confirms from the inflation report that saw GBPUSD at 1.3015 and continued to do so below this price level prior to the early US session. 

While everyone is waiting for the NFP report, the FX market across the board particularly the commodity currencies weakness can be seen relatively to the USD gaining strength. The AUDUSD is back at 0.7350 as one of the weakest for the week ending Aug 3, 2018.

USD Gains Steam & European Majors Drift Lower

With a stellar jobs data, the trade spat between the two biggest economies increases as China brings the issues to the WTO and European majors particularly the Sterling Pound have been quite supportive for the USD. The DXY is seen retracing back to its session high at 95.60 basis point as it is the strongest currency against its counterparts.

With the Sterling Pound (CABLE) drifting lower when it missed its retail sales report. GBPUSD is at 1.2984 heading well below the 1.2880 levels where it came from. While the EURUSD is keeping tis pace trading well below 1.1600 retesting it minor support levels, in which case both majors are in the defensive trying their respective best to hold these levels.

That includes the USDJPY corrective price action briefly dropping below the 113.00 handle due to risk aversion and from a light turnover from speculative liquidation as it draws closer to the US trading session. Meanwhile, with China soft data, commodity currency AUDUSD have likewise maintained a weaker stance as it falls to the 0.7343 where a revisit from where it came from at 0.7180 - 0.7280 range would not be discounted as long as the USD keeps its pace moving forward.
 
Although, the surrounding factors quite supportive of the USD strength came from the US  data, other equally important factors came from lower Gold at $1216.00 and Oil prices at $69.90 after marking a $67.80 low which have kept the USD index steady to higher price movements well in line with the FED's rate hike guidance from FED chair Jerome Powell's current testimony. While US equities are in a corrective mode from trade uncertainty will still be a concern for most investors relentlessly reacting to a volatile trade spat between China and the US including its allies.

GBPCHF Cross Rate Lift USDCHF

The Sterling / Swiss Cross rate's resiliency even after CABLE's corrective decline from missing retail sales expectations have continued to dominate well within its near term trend direction. With the GBPUSD reaching a crucial resistance levels at 1.4375/80; it had limited effects on price action as the USD index (inverse price relation) have been on a struggle to continue its consolidation well within a tight range.

In spite of this condition, the #USDCHF likewise managed to rise to a significant level as indicated on the chart above, with a probable retest at the parity level while still trading at 0.9710 to this writing. Especially coming from a well technically motivated support price range at 0.9200 - 0.9305 which may also serve as a double bottom figure so to speak.

Meanwhile, when market conditions on the European majors does not change from ECB Mario Draghi that may influence not only the #EURO; the  GBPCHF Cross currently at 1.3768, but at the rate its moving would eventually retest its initial target levels at 1.4360/80 range in the near to mid-term outlook. This could lead to a scramble between the major Cross rates once any sudden changes on the EURO occurs.

The major pair's behavioral pattern and price action are confined within a major channel higher relative to its near term lower highs nearing the parity price levels with the USD. The USD have found a catalyst for a firmer tone in the form the 10 year US Treasury yields nearing the 3% threshold. This enabled the relative rise for the DXY back to 89.95 bp as of late Thursday US session. The week's closing will provide a better market outlook moving forward

For the time being, the market's sentiments would continue its course in the FX market. However, major market participants have been carefully watching equities and commodities as oil and precious metals are gaining grounds while US equity indices are still in a roller coaster ride with prices moving in both directions.

Tail Wagging FX & Equities' In Both Directions

Follow where CONVICTION is stronger!

To no surprise, the market place have reflected price volatility as a common ground with the current  price action in the US trading session. US equities particularly with the DOW's failure to stay afloat above 25k is swaying from triple digit changes between highs and lows which comes relatively easy and see investors shifting gears or simply changing hands quickly with price action narratives.

Especially with the most recent report on the President's steel and aluminum tariff plans drew a quick rebuttal plan of action from the EU counter balance and have made the markets react in both market directions. A probable Trade War in the making have already proven depressing for the USD Index which also slipped below 90.05 losing momentum from the previous move and trading at 89.61.

No different with the FX / currency market where we have seen a quick turn around for the EURO when it marked 1.2180 with a low at 1.2154 level, CABLE at 1.3750, low at 1.3711 and the USDJPY at 105.50 with a low at 105.25. Which actually sparked a price recovery after marking our price objectives and is currently at 1.2410, 1.3883 and 106.20 respectively.  

US #Equities spilled over the #NK225 and recovered to a high at 21551 just in time with the #USDJPY at 105.50 with an extension at the 105.25. This levels were practically aligned that is why we mentioned that a contrary move was indeed in the making. With the USDJPY making a price recovery trading at 106.20 motivated by a technical divergence

And this proves to be the #VALIDATION of both before and after the fact. A typical market play reflecting #VOLATILITY is present in both sides of the market. Friday's #JOBS report would be the clincher for the rest of the week.

USD Reacts on FED Chair J.Powell Testimony

European Majors Defensively on the Decline

Fed Chair J Powell's testimony which covers, jobs, wage growth, inflation well within target and interest rate increases would be as expected for the year. These statements in general have had a favorable price reaction with the USD, contrary to the wider budget deficit being brought into the discussion.

The #DXY move above 90.05/10 on the way up would provide a glimpse of how the end of the trading month of February in a more positive tone. Especially with a triple digit price recovery for the equities markets.

With that said, the repercussion on the #EURO have driven the single currency to decline easily, currently at 1.2235 aiming the initial objective at 1.2180 in the near term. While the decline would eventually spill over with the EURGBP Cross. Meanwhile #CABLE / #GBPUSD has followed price action towards the 1.3880 which could meet some tentative support at the 1.3750. That is when volumes for the USD builds the likelihood of the European majors would initially feel the impact of a USD turn around at this point.

Reference to Strategies:

USD Probable Turn In the Making Posted As of Feb 21, 2018 

DX Futures Roll over up nearly 2.00 basis point from 1st trade position Feb 02, and a 2nd retest was made Feb 16 on the DXY before today's up move Feb 28, 2018.

Plateful of Market Volatility: DXY EUR GBP & EURGBP Cross Rate

As we were just winding down the end of January and have validated our market call on the USD's range levels, the market place have experienced a not so welcoming sight for major equities declining a total of more than triple figures for the week ending Feb 2, 2018.

And the market's reaction started off with Bonds, US Treasury yields nearing the 3% mark (1st signal), followed by tech and healthcare stocks other than the wide factored in rate hike by the Federal Reserve have contributed much to the decline as the market shift more towards inflationary pressures, in spite of the resounding jobs figure previously reported. 

As of MegaTrade101's focus on the USD index as our primary indicator, for as long as we have derived and have conclusively deliberated on the market's next probable move we would be in a better footing with the market's overall price volatility between equities and the foreign exchange market. Majority of funds denominated in USD are in the market place with foreign denominations in the European markets are separately allocated.

Moreover, the current market conditions have required a much thorough balance in equities and foreign currency trading funds allocation. The delicate balance of portfolio management has come to a point where upon driven by the 2nd signal of the USD marking our objective levels ahead of the time schedule anticipated.

Nothing really new, as noticed in today's trading activities it takes rather a shorter term period in achieving target levels in equity markets. But it takes more than the normal period to attain such objectives in the foreign currency market unlike those days when global connectivity and high frequency trading has not so much dominated the markets.

Click here to continue

A 'TRUE REFLECTION of the US DXY Index

Market Recall: US Dollar dated Sept 2017 

#DXY Index as it speaks for itself.

Market Recall : USD - DXY: Where it came from & Where it's Heading! 

VALIDATED as of January 26, 2018

Keeping an active journal is part of due diligence!

#trading #investing #strategies - For the right Reasons

A more positive tone from European data have pushed the EURO to 1.2527 near its 2nd line of defense as UK GBP bounces 1.4345 during the session. Both ECB Mario Draghi's comments and US Treasury Secretary Steven Mnuchin have completely dragged the USD lower.

The USD - DXY is trading at 88.57 with a session low at 88.43 well within our price call. It would now take some time for the USD to recover which can drag all the way to the mid-year at the rate it is going. Further extensions are expected before any relief recovery can be expected to turn until a substantial short-covering volumes appears. 

Related Information: US Dollar Index & Relative Indexes

Knowing these indices correlation with one another and how to apply their weighted average in real time trades is narrative into actual market price action is key to a successful trading journey.

USD Weakness Dominate Across the Board

As Market Sentiments Weigh Heavy

With the Japanese Yen still gaining ground on its value the USDJPY just broke the 110.00 levels and its currently at 109.89 aiming the 107.80 - 108.00 range on the way lower with an extension that may not be discounted to surpass these levels. The USD's continued weakness has been the dominant factor in the Yen's rise as it is supported by strong PMI & Japanese exports on top of Yen repatriation gradual flow into equities contributed to the appreciation as a whole. Although, the NK225 is on a corrective mode price at 23941.11 from a high at 24129.34 due in part to the USDJPY decline as of today's market movement.

The DXY is at 89.90 as of this writing. And at the rate it's going the 87.50 - 88.80 basis point range is simply a stone's throw away from its objective. On the other hand, this also provided other markets to catch up on the US Equities all time highs and directional movement as an overall picture taken into account. And more importantly the European majors like CABLE and the EURO have gained so much from where they both started during the last quarter of 2017.

ASX 200 Index

One of our market insight on the currency front is the AUSSIE Dollar rise as the ASX 200 index have also benefited from the USD weakness but more importantly Australia's growth have proven to take shape as the index have rallied to its six month high and stayed above the 6000k key price level. 

For the better part of the 1st quarter, we remain well within our time frame mentioned in our previous market outlook heading towards the 2nd quarter mid-year market shift as it now takes just about that period of time for the currencies to make a considerable move to really make a well informed trading and turning trades into an investment position particularly for CABLE, AUSSIE Dollar and the USD Bearish ETF to name a few.

Excellent Reference: 

USD Where it came from and where its heading!

Market Insight: USD EURO CABLE AUD JPY

European Majors Roller Coaster Ride with USD Remain Weak

In spite of a slight relief recovery!

The past three (3) days has been quite a roller coaster ride between the EURO and CABLE. With the EURUSD surging as high above 1.2300 with a pullback at 1.2177 on the previous close. While trying to get a 2nd wind aiming higher currently at 1.2245 price recovery in the early US session. 

Meanwhile, CABLE's emerges from a support on BREXIT gaining ground again back to the 1.3940 after breaching its resistance levels 1st at 1.3750 and 1.3885 with a side pullback before moving higher at the back of the report. Thus trailing back to its original trend higher that halted a USD price recovery effort.

An increasing mix of market volatility between the three major market in stocks and the Forex market now have made head winds flare with price swings relatively more interesting to engage with. For now the market remains to still be on course for European majors to accelerate and much to the concern of a strong Euro will give the ECB something to think about.

And the FTSE 100 at a disadvantage currently down at 7687.63 -37.43 -0.47% to this writing simply awaiting for earning seasons reports. While US equities are in the same corrective mode after record levels nearing the end of a short trading week near the 26k handle where it recently broke through for the 2nd round.

Let's see how US equities pare off gains or continue its advances at the end of the week's closing. Then again, the major trend remains positive and any correction may simply end up to be short-live. And for the USD to remain still in search of a bottom near the psychological price at 90.05 basis point before any significant price recovery can be justifiable.

European Majors Momentum Driven Market USD Weakness

With the USD still struggling to find a relief recovery have finally been taken over by the momentum driven trades from the YEN, EURO, CABLE, and the AUSSIE Dollar. It's like a concerted effort by the GANG of FOUR (4) as we call them in the interbank market. Initially leading an early stage with the Japanese Yen below the 110.50 levels for the past 6 trading days of accelerating value alone have actually led the pack as the rest followed suit.

While keeping tab at the USD weakness, Oil and Gold prices higher the selling pressure surrounding the DXY have made it harder for any immediate recovery. Although, we did mention that the probability would be towards mod-year term for a gradual move as the USD aligns itself for the next subsequent rate adjustments by the Federal Reserve.

Its has now 'VALIDATED' our market call on the USD Weakness Lifts Majors Higher dated Jan 02, 2018. With the EURUSD (chart above) near the 1.2280 high, CABLE at 1.3820 first line of defense, and the AUDUSD back to 0.7980 levels. Therefore, with the USD being our main valid indicator for currency trading when it moves more often than not the rest of it's counterpart moves in line with the corresponding value.

A more direct effect can be expected with the EURO as it carries a heavier weighted average distribution from the USD Index composition as indicated in the link provided for TSOT members access. It also shows the other relative importance of knowing how these distributions are reflected with the rest of the global currencies in Europe and Asia.

Full Disclaimer Apply 


BUILDING WEALTH with ASSETS are GOOD but its even BETTER when
LIQUIDITY is there when YOU CALL it.

#trading #investing #strategies 
Only For the Right Reasons

USD Weakness Lifts Major European Currencies Higher

Among others!

With some Asian exchanges still closed for the holiday, the start of the new year for China's Hang Seng Index (HSI) moved reaching a 10 year high at 30515.31, +596.16 pts. = 1.99% on the first trading day of 2018. With Shanghai at 3349.05 +41.88 = 1.27% increase likewise, shrugged off the decline in the US equities on the last day of trading 2017.

With the USD slipping into negative territory for the year at 92.08, the USD Index would have quite some difficulty to recover at this early stage. Currently, the US Dollar index is at 91.85 with a low at 91.75. And may find itself in search of a bottom at the start of January trading. For now, any price recovery may simply end up as a relief recovery up until the mid-term of the 1st quarter of 2018.

AUDUSD As of January 2, 2018

Which can only mean good for the Aussie Dollar now at 0.7840 from the bottom price of 0.7500 just last Dec 08, 2017. And the continuation for the EURO currently above the all important price of 1.1880 and is now at 1.2035 to this writing. While CABLE have been dragged from the BREXIT negotiation table, it had worked itself back to its current levels at 1.3555 with a second wind aiming to mark 1.3580 - 1.3680 range for the week ahead.

With the backdrop on OIL's recovery above $60.00/bbl and Gold managing to stay afloat above $1300 /troy oz. at the rate that both markets have kept a firm grip due to the USD soft prices for the 2017, after briefly touching a 103.00 basis point on the 1st week of January 2017. And continued its decline starting the 2nd quarter thereafter. That's is why we have stayed well within the equities market towards the end of the year. With only to carry the AUSSIE Dollar and CABLE as Europe starts to gain economic ground from their recent lows, while focused on BITCOIN and GBTC Investment Trust settlements prior to the CBOE and CME launching their respective trading. An excellent trade decision if we may call it above par! As it would be unwise to trade against the CME when it comes to Futures trading.  

Let's see the first month's trading and decide how the 1st quarter would really look like based on our near term analysis for the USD as always our basis for market reference. 

#USD Rises, #CABLE Intraday Stalls, #EURO Declines

The #EURO's failure to stay above 1.1880, after trading extensions market near the 1.1980 /00 levels have gradually gone back towards the 1.1755 levels where it started from. This was driven by the USD gaining ground especially from the NFP figures favorable to the USD - DXY back above 94.00 BASIS POINT in the US session.

The Euro's decline spilled over to the #EURGBP cross rate where a similar trading scenario can literally be drawn from the simultaneous a short-live price recovery and a reversal for CABLE after a break though on BREXIT became a fact that the market had earlier reacted on. #GBPUSD retreated back to where it is currently being traded within an intra-day price 1.3363 from the previous week. The rising channel on CABLE remains to be intact as the corrective price action is attributed to the market sentiments in UK and NFP report.

A continuing USD price recovery may still place some serious pressure for the European majors to drift lower as market searches further for fresh incentives to do otherwise. For now FX market and precious metals shift towards a decline in volumes as they have been overshadowed by Equities and the Bitcoin craze that had somehow siphoned a considerable share of investors interest and funds traded with prices hovering above the 15K levels.

EU GDP Lifts #EURO #EURGBP Cross Rate

CABLE Recovers from early loss

Even before the EU #GDP growth report came out, the EURO's price at 1.1580 have been the critical price level where an expected technical rebound would be met once it had reached that level. A more psychological price support previously defined, plus a well supported growth in Germany's economy have beem the main drivng catalyst that provided the #EURUSD European rally back towards the 1.1747 to this writing. Thus supports the #ECB's tapering plan scheduled for next year to continue its course.

With that said, UK PM Theresa May's political turmoil prompted the Pound Sterling (CABLE) to decline below the 1.3100 levels which has been in the defensive for quite awhile. The beneficiary from these price action which spilled-over into the #EURGBP cross rate, saw prices surged back to 0.8970.

A clear bullish signal that supported prices while making a follow-through from its low at 0.8800. With the USD loosing steam and retreated back down below the 95.00 basis point gave way for the EURUSD to surge a 200 point move along side the EURGBP cross rate. A typical trade strategy that we have been executing for quite sometime. And have shown its effectiveness especially when the USD stalls and a good fundamental report comes along such as today's EU GDP data.

#USD Back on Track with #CABLE & #EURO still on the Defensive

Fundamental Vs. Technical

The dynamics for the USD - DXY price recovery currently at 93.66 has not change in spite the fact that it did decline to its recent low at 92.74 basis point. Even when the USD declined since the 1st quarter period and continued its run down until marking a low at 91.01 last September; the DXY completion of its wide range has been validated based on our market call.

As the market prepares for the FED's December rate hike should support any corrective move for the USD from hereunto on top of President Trump's choice for the next FED chair. On the other hand, most technical chart configuration would result towards a probable full turn towards the higher in which it came from.

The European majors particularly the EURUSD is having difficulty of sustaining a full recovery as both fundamental and technically driven market is heading towards a neutral to more bearish outlook in the mid-term. This should be given some serious consideration that prices would trade in a narrow band that can trigger further declines.

EURUSD Price Update as of 10.25 still below 1.1750

Recent data from the US side were favorable, but the Sterling Pound found it difficult to support UK CPI which met expectation figures. GBPUSD is back below 1.3180 and may retest recent price at 1.3027 after coming from a 1.3328 daily high; thus providing a good lift for the USD - DXY back to 93.66 to this writing. Issues on BREXIT has been keeping CABLE more on the defensive even when it climbed above the 1.3300 levels which is now considered to be just a relief price recovery. Daily session HI/LO is a normal pattern as traders struggle to take positions ahead of data coming from the US.

GBPUSD Price Update as of 10.25

USD Gains a Leg Up, EURO & CABLE Declines

Weighing Market Conditions

The JOB#s figures and unemployments rate have been over-shadowed by surrounding external factors coming from Europe which we can consider to be the real catalyst for the USD price recovery. But the initial ill effects on US Equities have contributed to the day's trajectory lower after the report with all three (3) major indices down in double digits respectively.

Reference: USD Resiliency

Although, the market has pricing in a higher probability of a December rate hike still weigh in the market as the USD gradually advances above the 94.00 levels. Talks of possible new Fed members' dovish or hawkish stance on the US economy and monetary policies are also up in the air for discussion.

Meanwhile in the UK, Prime Minister Theresa May is struggling with political uncertainty among her party members questioning her ability to resolve Brexit negotiations is ongoing. This led the Sterling Pound to continue to depreciate further at 1.3038 as of this writing.

Along side other issues in Europe, Spain's crisis with the Catalonian likewise have added more selling pressure for the EURO that led to further declines at the 1.1670 levels not since July 2017. Earlier signs on prices were indeed made known prior to these declines with the EURO and CABLE, but we must admit that we have simply walked into these market conditions that somehow enhanced our trade position based on the previous market view analysis released last Sept 23rd, when Moody's downgraded UK credit rating over Brexit. Session pullbacks are not to be discounted.

These three (3) major catalyst have formed the main support for the USD recovery which have outweigh the Jobs report. With that said, the USD-DXY is trading at 94.14 with an initial session high at 94.28 with probable extensions at 95.05/10 for now. For as long as no unexpected market changes appear in the near term, remain cautious for any possible resolutions in Europe that would redefine market activity. 

London's Market Reaction May Dent #CABLE Surge with #contagion on #EURO #EURGBP Cross Rates Increase #VOLATILITY

#CABLE's surge above 1.3600 levels due to speculative trades of an expected rate hike in November maybe dented from London's attack at the opening session by Monday in Asia heading towards the European sessions. While its price action has been justified well surpassing its previous high range at 1.3223 - 1.3268 the directional trend for the Sterling Pound or GBPUSD would still be intact in spite of the probability of a corrective move due to fundamental factors.

The USD initial price recovery have paused as the surge on the #GBPUSD managed to play out well compared with the single currency #EURO likewise with an interim rally towards the 1.2092 have lost its steam giving a mix signal in the market. And affected the obvious contagion effect on the #EURGBP Cross rate. That led to a dramatic decline at 0.8774 from a high at 0.9226.

By watching the relative price action of these major currency pairs including the #USD- #DXY prices their relative 'CORRELATION' has everything to do with a trader's course of action. Technical indicators are simply used as a guide; lagging as they are after the fact that prices have moved ahead of these indictors. The DXY have found a base range that can hold daily price action towards the recent high. But there is still no actual confirmation of a trend reversal that is seen with the exemption that this base range may hold true by the end of the month's trading. For now, 91.00 low may have a retested but really depending on CABLE's run would loose steam for the time being.

Watch for the Asian turnover sessions towards European trading where an increase in volatility would be expected as we all draw closer toward the last two weeks of the 3rd quarter period.   

Related information: How significant is an 'Interest Rate & Currency Swap for a Forex Investor?

 

#CABLE Surge Vs. #EURO's Decline: GBPEUR Cross Rate Preference

Most traders simply trade the traditional #EURGBP cross rate.. Learning when and how to switch Cross Currency relationship is crucial even for the slightest reason like a #GBPEUR Cross trade as this defines the POSITIVE SWAP RATES of CABLE would add to an investors net trade position as against a NEGATIVE rates on the #EURO kept overtime. Learning to Master Counter Trade Strategies between these two (2) majors is a MUST, if anyone seriously intend to trade the FX market. 

The order of business from the BOE for a rate hike this November have actually been the catalyst for this rally which now has spill over among the European currencies that included the Swiss Franc. This moved initially established a pause for the USD price recovery but still remains that #CABLE sentiments would outweigh investors playing on the long side of the Pound.  

It didn't take too long for the #EURO to get back where it started from. Trading at the psychological support that used to be a previous resistance at 1.1880 after coming from a high at 1.2092 just within the week. While #CABLE have surged towards 1.3398 along side a USD recovery which maybe at times quite uncommon. Due Diligence!

There are several ways of #FX #trading and the true essence of #investing in Foreign Exchange Market takes a little more #training than what other people present in their sponsored seminars.